ISLAMABAD According to The News on Monday, the caretaker administration is proceeding with the Federal Board of Revenue (FBR) reorganization plans, with the chairman prepared to submit the summary to the cabinet for review this week.
At the implementation stage, Amjad Zubair Tiwana, the head of the nation’s revenue apparatus, would also look to get the Election Commission of Pakistan’s support.
The military establishment was instrumental in resolving the disagreements and persuading the FBR chairman to endorse the summary and forward it to the cabinet division. This was particularly true of the commander overseeing the Special Investment Facilitation Council (SIFC).
The existing FBR chairman had two choices after receiving the plain and concise message: provide the summary or return home.
After Tiwana signs, the summary will now be sent to the cabinet this week.
The News asked the FBR chairman for his thoughts on the situation, but he did not reply.
Sources, however, claimed that FBR Chairman Tiwana had found himself in an unpleasant situation where he had to give in to pressure and accept the suggestion put up by Dr. Shamshad Akhtar, the Caretaker Minister for Finance. The senior brass of the military ordered them to find a medium ground that would satisfy all parties, not to embrace their point of view.
One official stated, “Once the federal cabinet gives its nod, chances are that both the IRS and Customs officers may approach the judiciary,”
stated one official, adding that while they were sure they would be treated seriously, the top brass wanted to move forward.
Referring to the official minutes of the SIFC meeting, a prominent tax expert said that after reading the minutes, he believed that all was settled.
The chairs of the two oversight boards will come from the business sector. Both private and public members will be on the two boards; the public members, with the exception of the DG of IR and Customs, are unlikely to be FBR employees.
He indicated that there would be no representatives from the IR or Customs on the Federal Policy Board, which will report to the Finance Minister.
Tiwana will be answering to the Federal Policy Board in her capacity as secretary of the revenue division.
The Federal Policy Board will also receive reports from the tax policy office, which is likely to be predominately made up of private industry experts. Additionally, DGs will be the only ones leading the two service groups, and it doesn’t appear that there will be any room for subordinates.
“It appears that all decisions have been made, so what is Tiwana sahib now opposing? I believe that in an attempt to preserve face and project a heroic image of himself fighting for the IRS’s interests, he is disseminating the information that he did not start the summary for the cabinet. The minutes clearly show that the FBR chairman has already admitted to everything,”
The summary will suggest that the Federal Board of Customs and Federal Board of Inland Revenue be constituted separately, with DGs from the corresponding cadres appointed as their heads, in order to create a new governance structure for the FBR.
The chairs of the respective Oversight Boards for the Customs and Inland Revenue Administrations shall be independent, distinguished experts. Nominees from the public and private sectors shall be selected based on appropriate standards, possessing the requisite experience and integrity.
Strengthening governance and accountability through oversight boards will be the main goal of the reforms. A new policy mandate will be reported to the Federal Policy Board by the reorganized body headed by the minister of finance, Tiwana.
Under the Federal Policy Board, the Tax Policy Office will be established with HR having the necessary experience, including professionals in taxation and industry. This office will oversee the harmonization of asset valuation procedures and the legal and regulatory framework of taxation regimes, as well as encourage coordination between revenue and policy.
The suggested changes will be put into effect within the parameters of the FBR’s current resource allocation. In order to maintain independence, the governor SBP directed that the Tax Policy Unit would oversee the audit functions of FBIR and FBC.
